BusinessPlan2008-2012-Softsmith.ppt

Finance for Non Finance Professionals N. Muthuraman Director RiverBridge Investment Advisors Pvt. Ltd. Agenda Objective of the Webinar Key takeaways Purpose of existence of an economic entity Financial statements – construction and purpose Understanding and interpreting Financial Statements Financial analysis as a measurement tool Purpose of analysis – equity perspective, debt perspective Ratio analysis Explaining simple terms in Finance - ROI, IRR, Time Value of Money QA Objective The webinar will help the participants To gain an understanding of the basic principles of finance To evaluate decisions related to finance more knowledgeably To participate effectively in finance related discussions in their respective organisations To gain basic understanding to pursue higher education / career in the field of finance To follow recent economic events and its impact on corporate performance To take informed decision related to personal finance and investing To interact with financial department / finance professionals more knowledgeably Key Take Aways Key takeaways Basic understanding of various forms of economic entities Understanding financial statements and perform ratio analysis on published statements Evaluate a corporate investing or financing decision meaningfully Track financial performance of listed companies closely, to take well-informed investment decisions Read / follow business newspapers / business channels with better understanding Purpose of an economic entity To do ‘business’ is to create an economic entity with the purpose of Wealth creation Wealth management, and Wealth distribution Purpose of an enterprise Business as an economic entity exists to make profits: Trading activity Selling price Cost of purchase Manufacturing activity: Selling price Cost of purchase + conversion costs Services Price for service Cost of providing the service Stakeholders We need various entities to come together to run an enterprise and g